What is the name given to foreign currency held by a central bank or monetary authority for the purposes of exchange rate intervention and settling international government obligations?

Choose the correct answer

Explanation

The correct term is 'Reserve currency,' which refers to foreign money kept by central banks to manage exchange rates and fulfill intergovernmental financial commitments. Other options like 'Hot currency,' 'Pegged currency,' and 'Hard currency' do not specifically describe this function.

What is the name given to foreign currency held by a… — Basic of Economics | PakQuizHub